The European Union (EU) has suspended export benefits to sectors such as textiles and plastics under a preferential scheme for India and two other countries from January 1, a move that will impact the country's shipment to the 27-nation bloc. The development is important as the two sides are likely to announce the closure of negotiations for a free tarde agreement (FTA) on January 27.
'Trump says India will buy over $500 billion of US goods.' 'At present, India's annual imports of goods and energy from the US are under $50 billion.' 'Reaching $500 billion would likely require more than 20 years, suggesting the figure refers to a long-term aspiration rather than a near-term commitment.'
India's proposal to impose retaliatory import duty on certain US products in response to American tariffs on steel and aluminium could cast a shadow over ongoing negotiations for a trade agreement between the two countries, think tank GTRI said on Tuesday. The Global Trade Research Initiative (GTRI) said that if the US engages in consultations with India on the matter or withdraws tariffs, a resolution may be reached.
'India has very strong tariffs on certain imports from the US. Like in the automobile sector, India charges 100 per cent'
The United States government has expanded trade preference benefits under the Generalized System of Preferences to cover about $900 million more imports a year from India.
The US decision to end the generalised system of preferences for gold jewellery and brass lamps from India is bound to hit the India jewellery sector hard and will cause major job cuts in the industry.
'Modi's intention was to create goodwill that will allow India to be seen by Trump as more than just a bad tariff problem.' 'He succeeded brilliantly on that count but none of these wins are unfortunately permanent.' 'Modi will have to do this again and again if Trump's grievances are to be durably assuaged.'
Deputy US Trade Representative Karan Bhatia, has defended the Bush Administration's action to deny duty-free tariffs for imports of gold jewelry
In a major blow to China's exports, the European Union has announced that it is cancelling some of the advantages enjoyed by Chinese commodities under the generalised system of preferences (GSP) so that other developing countries can also benefit.
Federation of Indian Chambers of Commerce and Industry on Wednesday asked the US to restore the Generalised System of Preferences for Indian exports of chemicals and allied products.\n\n\n\n
In a major development, India and the US have agreed to end six trade disputes at the WTO through mutually agreed solutions, while New Delhi will remove retaliatory customs duties on certain American products such as almonds, walnuts, and apples.
During his first term as the US president, Trump described India as a "tariff king" and in May 2019, terminated India's preferential market access.
The Trump administration terminated India's designation as a beneficiary developing nation under the Generalized System of Preferences in June.
Prez says that India has not assured the United States that it will provide 'equitable and reasonable access to its markets'.
Pulses are most vulnerable to pests and diseases if the monsoon remains patchy for the rest of the season.
With India being the largest beneficiary of the GSP, it has been hit the most by the latest decision of the Trump administration
In a letter to Speaker of the US House of Representatives Nancy Pelosi, Trump said he was determined that New Delhi had "not assured" the US that it would "provide equitable and reasonable access" to the markets of India.
McDermott trade amendment to reinstate GSP benefits to India is approved by US House.
The trade deal, officials say, can lead to an effective trading bloc against the China-led Regional Comprehensive Economic Partnership.
Keen to salvage its engagement with Washington DC that has gone southbound ever since the Trump administration came in, India has called for a final set of meetings with US trade officials, soon, reports Subhayan Chakraborty.
According to exporters, withdrawal of incentives under GSP would impact India's export worth $5.6 billion to the US.
'With Trump, the relationship was very transactional, whereas with President Biden it is very structured.'
Congress chief spokesperson Randeep Surjewala wondered why Prime Minister Modi was 'silent' on his 'India First' policy as President Trump talked of 'America First'.
"The decision is likely to lead to a number of jobs being lost in the jewellery sector in India, specially among vulnerable groups of society," Commerce and Industry Minister Kamal Nath said in a statement.
The US seems to be engaging in a game of brinkmanship where President Trump's visit has been used as 'leverage' to pressure India into agreeing to a trade deal, notes Kashish Parpiani.
Trade tensions between India and the US have been rising with President Donald Trump complaining that tariffs imposed by New Delhi on American products were "no longer acceptable".
The declining trade deficit figures clearly reflect that the US exports to India are increasing.
India has been the single biggest beneficiary of the decades-old US Generalized System of Preferences programme, allowing the country to export $ 5.7 billion worth of duty-free goods in 2017, according to figures from US Congress.
Trump had said a comprehensive trade agreement with India would take much longer to finalise than earlier expected.
India has demanded resumption of export benefits to certain domestic products under GSP, and greater market access for its products from sectors like agriculture, automobile, auto components and engineering. On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items and medical devices, data localisation, and import duties cut on some ICT products.
India's exports to the US in 2017-18 stood at $47.9 billion, while imports were $26.7 billion. The trade balance is in favour of India.
However, the countries did not take up the issue of proposed withdrawal of export incentives by the US to Indian exporters under Generalized System of Preference.
ICT products make up a minuscule $ 407 million, out of the $ 35.54 billion of total inbound shipments from the US, as of now.
While the BPF and the UPPL are considered rivals in the Bodo-dominated areas, there was no pre-poll alliance among other parties as well.
Several exporters in Surat said they are finding it tough to clear their stocks for Christmas as they are not in a position to contain the price rise caused by the GSP withdrawal and strengthening of rupee against dollar.
While the Trump administration wants India to lower the trade barriers and embrace "fair and reciprocal" trade, India has raised tariffs on 28 items exported from the US in retaliation to America's withdrawal of preferential access for Indian products.
Trump's visit symbolised heightened partisanship and a return to chemistry between leaders defining bilateral ties, notes Kashish Parpiani.
India has raised tariffs on 28 items, including almond, pulses and walnut, exported from the US in retaliation to America's withdrawal of preferential access for Indian products.
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